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KC0711
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Sold home in Dec. Put a large amount into next home without mortgage. Is there somewhere I need to document this in Turbo Tax?

Name is on deed but not new mortgage.  Did not know how to document this.
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2 Replies

Sold home in Dec. Put a large amount into next home without mortgage. Is there somewhere I need to document this in Turbo Tax?

The purchase of a personal residence is not reported on a tax return.

You can still enter any property taxes paid on the residence in 2023 on the 2023 tax return as an itemized deduction on Schedule A.

Sold home in Dec. Put a large amount into next home without mortgage. Is there somewhere I need to document this in Turbo Tax?

The sale and the purchase are completely separate.

 

You may owe capital gains tax on the sale.  If this was your main home for 2 years or more, you can exclude the first $250,000 of gains from tax (or $500,000 if married filing jointly) and you pay capital gains tax if your gain was more than that.  What you do with the money later doesn't matter.

https://www.irs.gov/pub/irs-pdf/p523.pdf

 

For the new home, you probably paid daily interest from the closing date to the end of the month, that is tax deductible as interest even if is not reported on a 1098.  You probably also paid a property tax adjustment at closing to the seller, that is considered deductible property taxes as if you paid them to the city or county.  Amounts that you put in escrow for future taxes or amounts that you paid as a downpayment are not tax deductible.  Certain taxes and fees that you might have paid to buy the property are counted as part of the purchase price and may reduce your capital gains in the future when you sell, they are listed in publication 523 as well.  

 

For 2024, you can deduct mortgage interest that you pay as long as you own the home, even if your name is not on the mortgage note.

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